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The question we wish to consider now is: How would we calculate the present value of an annuity.ASAP Tutor is homework Help website for those who need help in learning Accounting, Managerial Accounting, Financial Accounting, Intermediate Accounting, Corporate.This approach of breaking down a problem has been appreciated.We are punctual with due dates, and deliver the assignment to you within the mutually decided time frame.

The first topic in the list above is Value, which refers to present value and future value problems.All we have to do now is solve the equation for P, and with a little algebraic manipulation, we will have the formula for the present value of an annuity.

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Date 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31.The second equation can easily be solved for m, after which you can calculate, for example, the size of a monthly payment you would need to make in order to have a certain amount of money at some point in the future.

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Notice that the second equation has no P in it, so we cannot simply solve for P as we did in the first equation.

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I am looking for assistance with my managerial finance assignment.That means we can set the right side of the first equation equal to the right side of the other to obtain.

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